Mumbai ranked 'world's cheapest city'

Mumbai has been rated as the world's cheapest city, according to the Worldwide Cost of Living Index.

The index, compiled by The Economist's intelligence unit, found that Asia was home to many of world's cheapest cities.

According to the Sydney Morning Herald, Karachi and New Delhi have been ranked second and third on the Index, while civil war and collapse of the Syrian pound placed Damascus as the world's fourth cheapest city.

The bi-annual index tracks the price of a virtual basket of goods and services in 131 cities around the world and some of the basic prices compared in each of the cities is the cost of one kilogram of bread, a bottle of wine and a litre of unleaded petrol.